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HRA 09/04/2014 September 4, 2014 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of August 7, 2014 Meeting Minutes 3. Resolution for Approval of 2014 Tax Levy for Taxes Payable in 2015 4. Approval of Home and Garden Show Administrative Contract 5. Approval of Amendment to DEED Grant Contract - Northern Stacks 6. Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement - 7011 University Avenue NE Informational Items 1. Housing Loan Program Update Adjournment K:\HRA\Agenda Packets\2014 Agenda Packets\September 4, 2014\1 September-2014 Agenda Outline.docxK:\HRA\Agenda Packets\2014 Agenda Packets\September 4, 2014\1 September-2014 Agenda Outline.docx HRA ACTION ITEM SEPTEMBER 4, 2014 DATE: August 18, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Director of HRA Darin Nelson, Finance Director SUBJECT: Consider HRA Tax Levy for Taxes Payable in 2015 Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. The levy is equal to .0185% of the taxable market value of all real estate and personal property. The tax levy will allow the Authority to collect approximately $434,000, based on a city-wide tax market value of $2,345,374,800. In terms of the impact on taxpayers, the levy would cost $27.75 per year for a home valued at $150,000 and $185.00 per year for a commercial property valued at $1,000,000. The revenues raised by the levy are directed towards ongoing and future redevelopment priorities. State Statutes require the consent of the City Council, prior to the tax levy becoming th effective. The City Council will act on this item on September 8. As a final note, the HRA tax levy will be certified to the County Auditor on or before September 12, 2014. Recommendation Staff recommends that the Authority approve the attached resolution at their regular meeting on September 4, 2014. Attachment K:\HRA\Agenda Packets\2014 Agenda Packets\September 4, 2014\3 2015 HRA Memo (HRA Tax Levy).docx HRA RESOLUTION NO. 2014 - ___ RESOLUTION ADOPTING A 2014 TAX LEVY COLLECTIBLE IN 2015 BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on all taxable property within its area of operation, which is the City of Fridley, Minnesota (the "City"). 1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy"). Section 2. Findings. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority to adopt the General Levy to provide funds necessary to accomplish the goals of the Authority. Section 3. Adoption of General Levy. 3.01. The following sums of money are hereby levied for the current year, collectible in 2015, upon the taxable property of the City for the purposes of the General Levy described in Section 1.02 above: Total General Levy: .0185% of Taxable Market Value Amount: Maximum Allowed by Law Page 2 Resolution No. ___________________ Section 4. Report to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS 4thDAY OF SEPTEMBER, 2014. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WALTER T. WYSOPAL - HRA EXECUTIVE DIRECTOR ACTION ITEM HRA MEETING OF SEPTEMBER 4, 2014 Date: August 28, 2014 To: Wally Wysopal, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Home & Garden Show Admin. Contract __________________ Background The Fridley HRA has been the fiscal agent for the Home & Garden Show since its inception 17 years ago. The Cities of Mounds View and Blaine are partners in sponsoring the show. The revenues from booth rentals have typically paid for all of the expenses associated with the show. Since 2005, the group has contracted with Marsha Wagner (dba- Castle Visions) to perform the administrative tasks necessary for producing the Show. Marsha has become a valuable asset to those involved with the show. The Home & Garden Show planning group would again like to contract with Marsha Wagner for the 2015 the show generates adequate revenue to cover the cost of contracting with Marsha. Staff Recommendation Staff recommends that the HRA approve the contract between the HRA and Marsha Wagner/Castle Visions to provide assistance with the 2015 Home and Garden Show, as detailed in the attached contract. ACTION ITEM HRA MEETING OF SEPTEMBER 4, 2014 DATE: August 28, 2014 TO: Wally Wysopal, City Manager FROM: Paul Bolin, Assistant Executive HRA Director SUBJECT: MN DEED Contamination Cleanup Grant Amendment INTRODUCTION Earlier this year, Hyde Development and the Authority, received a grant through the Minnesota Department of Employment and Economic Development's (DEED) "Contamination Cleanup" grant program. As the project is now underway Hyde has requested that DEED allow the developer's cost to "cap" the soils underneath buildings and other required areas to count as a local match. Typically, DEED doesn't like developers using the capping expense as the local match, because it is the last cleanup work done on the site. DEED's staff feels confident enough in Hyde's ability to deliver, as promised, on the Northern Stacks project that they have agreed to allow using the capping expense as the local match. The only change to the contract, is shown on the attached sheet. Simply, the word "Cap" and the amount of "$2,250,000" is being added to the table of "Project Costs" found in the original contract. The cost of the capping will exceed the 25% of costs required for the local match. RECOMMENDATION Staff recommends approval of the attached amendment to DEED's Contamination Cleanup Grant Contract. ACTION ITEM HRA MEETING OF SEPTEMBER 4, 2014 Date: August 28, 2014 To: Wally Wysopal, City Manager / Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subject: Reinstatement of & First Amendment to Arena Purchase Agreement As the Authority has moved towards the acquisition and demolition of the Columbia Arena property, there have been some unanswered questions regarding the disposal of the Freon used in the ice making equipment. A Phase I environmental study, completed by the engineering firm of Carlson McCain, noted that the refrigeration equipment was removed from the arena and it was possible that Freon may be found in the soils and/or groundwater. The age of the buildings, along with a lack of knowing that the refrigeration was properly removed and Freon captured, led to hiring the engineering firm of Braun-Intertec to complete a Phase II environmental study. The Phase II study involved Braun taking soil and ground water samples, as well as soil vapor probes. The samples were all sent to a testing lab and provided mixed results. The great news is that there was no traces of Freon 22 in the soil or groundwater. The bad news is that there were traces found in the soil vapor probe samples. (I have attached Braun's draft report for your review). After reviewing the Phase II results with Braun, there were a number of questions that need to be answered prior to closing on the property. In order to provide the time needed to have our questions answered, we requested more time from the sellers. The seller's attorney was not able to get in contact with his clients prior to the Authority needing to send a Termination Notice out via courier. Because of the mortgages on the property, the sellers need the banks consent to sign the attached "Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement" that puts the original purchase agreement, with extended dates, back into play and provides the time needed for the Authority to have the environmental questions fully answered. Recommendation: Provided the bank agrees to the extension, Staff recommends the Authority adopt the attached, "Reinstatement of and First Amendment to Commercial Industrial Purchase Agreement". Fridley HRA Housing Program Summary Cover Page September 4, 2014 HRA Meeting ReportDescription Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for past month and year-to-date. Loan Origination Report Loan originations for past month and year-to-date. Remodeling Advisor Shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and Environment. K:\HRA\Agenda Packets\2014 Agenda Packets\September 4, 2014\7 Housing Program CoverSeptember-2014.docx